Forming a Wyoming LLC for Korean E-commerce Sellers
Korean e-commerce sellers can establish a Wyoming LLC to access the US market while benefiting from a 0% state income tax environment. This structure requires compliance with both US federal tax reporting and South Korean National Tax Service requirements.
The process involves state registration, obtaining an EIN from the IRS, and opening a business bank account through platforms like Mercury. Founders must maintain accurate records to satisfy both US information return obligations and Korean tax treaty provisions.
Model the full outlay, not just the setup fee
- SetupMercury (banking-only) setup$0.00
- AnnualYear 2 renewal$0.00
What the tax authority sees
Wyoming LLCs are treated as pass-through entities for US federal tax purposes, where non-US owners are subject to US tax only on income effectively connected with a US trade or business (ETBUS).
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
Use Wyoming for privacy and low state fees, but ensure your Korean tax accountant reviews the US-Korea tax treaty to manage potential double taxation on dividends.
- 01Form 5472 and 1120 filing requirements for foreign-owned single-member LLCs
- 02Potential $25,000 penalty for failure to file timely IRS information returns
- 03NTS scrutiny on foreign-source income reporting under Income Tax Act Article 3
From filing to funded bank account
US LLC (Wyoming) vs Estonia OÜ (e-Residency)
FAQ
Start filing with Mercury (banking-only)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.